Apple hit by first profit fall in decade

Slow iPhone sales and stiff competition end the tech giant’s era of ascendancy

Investors fear the iPhone 5 has failed to capture the imagination of consumers (Justin Sullivan)

APPLE will this week reveal its first profit slide in a decade as sales of its
iPhone start to slow down.

Earnings at the technology giant are expected to have fallen by about 20%
between January and March, against the same period in 2012, as booming
demand for its flagship gadget starts to wane.

The slide, which is set to be unveiled in Apple’s results on Tuesday, would
mark the first time it has suffered an annualised fall in quarterly profits
since opening its iTunes Store in 2003.

The figures are likely to intensify concerns that the Silicon Valley giant is
running out of steam after a dozen years of unparalleled growth. Since
launching the iPod in 2001, Apple’s annual profits have surged from $65m to
$41.7bn (£27.4bn) last year, lifting the company’s market value to a peak of
$660bn in September. After hitting that all-time high, however, Apple shares